New Haven Register (New Haven, CT)
Sandy Hook, Alex Jones parties close to deal in bankruptcy issue
NEWTOWN — Attorneys representing the families of Sandy Hook victims and three companies owned by Alex Jones said Friday they are getting close to an agreement that would see the companies removed from a defamation lawsuit and the case returned to a state trial court.
“The critical issue has been to make sure that the dismissals have been with prejudice and that these creditors, these plaintiffs do not assert a claim against these debtors,” said Kyung Lee an attorney representing Jones’ companies.
The families moved to drop the three Jones’ companies from the defamation suit after those companies declared bankruptcy last month, with court documents showing the companies posting a combined monthly income at $38,000.
In doing so, the families hoped to return the case to a trial court in Connecticut to focus the settlement proceedings on Jones’ company, Free Speech Systems, and Jones himself, who made at least $76 million in 2019, according to his attorneys.
Jones’ attorneys subsequently objected to the companies dismissal from the lawsuit, arguing it would cause “significant confusion regarding the (bankruptcy) court’s otherwise unquestionable jurisdiction…”
Appearing before a federal bankruptcy judge in the Southern District of Texas early Friday afternoon, attorneys on both sides said they were close to reaching an agreement that would remove the families as creditors
in the case.
“We have been working the last two weeks to make sure that they are not creditors and that the statements they make, in fact, confirm that and we have something in writing stating they are not creditors and that is what we have been working on the last two weeks to do,” Lee told Judge Christopher Lopez.
“Because of the amount of litigation that has taken place between the two parties, there is a lot of distrust and we are trying to bridge that gap,” he added.
Lee said once an agreement was reached the court would be notified, adding he did not, “… think we will have a need for a hearing on May 27 on the motion to dismiss.”
“They have decided they
do not want to participate in these cases, we are fine with that, and we just want to make sure it is documented and accurately described in the details, so they are no longer creditors,” the attorney added.
Until then, Lopez said the hearing would stand as scheduled but encouraged the parties to continue to work together.
“I do encourage the parties to continue to talk, it sounds like there is some progress being made and everybody’s rights are reserved,” Lopez said. “Today we are not taking up evidence, we are not doing anything, I think today was the day to appreciate the parties coming and providing me an update as to where we are.”